By now, we come to know that Fed Pivot is not going to leave the stage soon but simply increase the chances of dousing the US in recession. Said that over 47% of public accounting firms have frozen hiring, downsized roles, and outsourced critical tasks. However dark the situation might look, US CPAs are more optimistic that this will be a technical recession and not a long-lasting one. If you are someone who has enrolled for a US CPA course in one of the best CPA review institutes in India and aiming to make a career in the US, here are 4 unshakable facts that you cannot afford to lose.
Remote Working Cancelled
The pandemic forced the accounting world to solicit business remotely on a mass scale. But with the new normal setting in, CPAs can no longer enjoy the privilege as firms are dealing with complex network challenges and the work schedule of auditors has taken a topsy-turvy ride. As a result of this training fresh CPAs, building company culture, business development, and client relationships is taking a long time.
Auditing employees in accounting firms find their partnering clients as disturbing as they do not have an appetite for working round-the-clock as the partners do. Workload and working hours extending from 40 to 60 hours a week during the busy tax season are prime reasons for the great attrition in the accounting profession.
Two challenges confront CPA firms. Labor shortage and costly labor force. With the accounting firm witnessing 2-3 million auditing professionals retiring early, firms find it difficult to retain and hunt new resources. According to the Bureau of Labor and Statistics, In March 2022, over 6.3 million people resigned and there are over 11.5 million vacant job roles alone in the US.
Technology Adoption is Crucial
The accounting profession is undergoing a significant transformation with the increasing reliance on technology. Automation, artificial intelligence, and data analytics are becoming integral to the work of CPAs. Firms that invest in and adapt to these technological advancements are likely to stay competitive and efficient. CPAs entering the field need to be tech-savvy and open to continuous learning, as the industry is evolving rapidly, and staying updated with the latest technologies is essential for success.
CPA firms possess highly sensitive data of customers, clients, leaders, and industries. Cybercrime over the last decade has reached 80% and if it is left unchecked the financial sector might face a loss of $1.5 trillion. Over 98% of public accounting firms are under pressure due to data breaches, malware/ransomware attacks, and phishing schemes.
As ongoing inflation shares a direct impact on business performance and output, there is a rapid fall in clients and corporate footprints in accounting firms. Despite the accounting firm leaders are on the edge of managing office spaces and meeting clientele needs in a crunching situation, over 51% believe the future is promising as the hiring speed would increase along with compensation if the investment in technology is made the first priority.